FAC Explorer

Finding 1151930 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-09-03
Audit: 365488
Organization: Avivo (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The Organization failed to document a review of rental records to ensure compliance with federal requirements regarding rent reasonableness.
  • Impacted Requirements: Compliance with Uniform Grant Guidance (2 CFR 578.49(b)(2)) regarding reasonable rent for housing units.
  • Recommended Follow-Up: Implement additional controls to ensure rental rate checks are documented before entering into rental contracts.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Continuum of Care Program Assistance Listing Number: 14.267 Federal Award Identification Number and Year: Multiple Pass-Through Agency: Hearth Connection Pass-Through Number(s): Multiple Award Period: January 1, 2024 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Uniform Grant Guidance (2 CFR 578.49(b)(2) requires that when grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units, taking into account the location, size, type, quality, amenities, facilities, and management services. In addition, the rents may not exceed rents currently being charged for comparable units, and the rent paid may not exceed HUD-determined fair market rents. Condition: The Organization did not have evidence that a rental records review was performed to for an individual to ensure the contract rent being paid was comparable with those paid for unassisted units and that the portion of rents paid with grant funds do not exceed fair market values. Questioned costs: None Context: During our testing, we identified one out of twenty four persons tested, where the Organization did not have documented review of rental records to ensure the contract rent being paid was comparable with those paid for unassisted units and that the portion of rents paid with grant funds do not exceed fair market values. Cause: The Organization did not document that a rental records review was performed. Effect: The Organization is not in compliance with the federal requirement of checking rent reasonableness before admitting a participant. Repeat Finding: No Recommendation: We recommend the Organization evaluate its procedures and implement an additional control to document rental rate checks are occurring prior to entering into rental contract. Views of responsible officials: There is no disagreement with the audit finding.

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 575475 2024-001
    Significant Deficiency
  • 575476 2024-001
    Significant Deficiency
  • 575477 2024-001
    Significant Deficiency
  • 575478 2024-001
    Significant Deficiency
  • 575479 2024-001
    Significant Deficiency
  • 575480 2024-001
    Significant Deficiency
  • 575481 2024-001
    Significant Deficiency
  • 575482 2024-001
    Significant Deficiency
  • 575483 2024-001
    Significant Deficiency
  • 575484 2024-001
    Significant Deficiency
  • 575485 2024-001
    Significant Deficiency
  • 575486 2024-001
    Significant Deficiency
  • 575487 2024-001
    Significant Deficiency
  • 575488 2024-001
    Significant Deficiency
  • 575489 2024-001
    Significant Deficiency
  • 575490 2024-001
    Significant Deficiency
  • 575491 2024-002
    Significant Deficiency
  • 575492 2024-002
    Significant Deficiency
  • 575493 2024-002
    Significant Deficiency
  • 575494 2024-002
    Significant Deficiency
  • 575495 2024-002
    Significant Deficiency
  • 575496 2024-002
    Significant Deficiency
  • 575497 2024-002
    Significant Deficiency
  • 575498 2024-002
    Significant Deficiency
  • 575499 2024-002
    Significant Deficiency
  • 575500 2024-002
    Significant Deficiency
  • 575501 2024-002
    Significant Deficiency
  • 575502 2024-002
    Significant Deficiency
  • 575503 2024-002
    Significant Deficiency
  • 575504 2024-002
    Significant Deficiency
  • 575505 2024-002
    Significant Deficiency
  • 575506 2024-002
    Significant Deficiency
  • 575507 2024-003
    Significant Deficiency
  • 1151917 2024-001
    Significant Deficiency
  • 1151918 2024-001
    Significant Deficiency
  • 1151919 2024-001
    Significant Deficiency
  • 1151920 2024-001
    Significant Deficiency
  • 1151921 2024-001
    Significant Deficiency
  • 1151922 2024-001
    Significant Deficiency
  • 1151923 2024-001
    Significant Deficiency
  • 1151924 2024-001
    Significant Deficiency
  • 1151925 2024-001
    Significant Deficiency
  • 1151926 2024-001
    Significant Deficiency
  • 1151927 2024-001
    Significant Deficiency
  • 1151928 2024-001
    Significant Deficiency
  • 1151929 2024-001
    Significant Deficiency
  • 1151931 2024-001
    Significant Deficiency
  • 1151932 2024-001
    Significant Deficiency
  • 1151933 2024-002
    Significant Deficiency
  • 1151934 2024-002
    Significant Deficiency
  • 1151935 2024-002
    Significant Deficiency
  • 1151936 2024-002
    Significant Deficiency
  • 1151937 2024-002
    Significant Deficiency
  • 1151938 2024-002
    Significant Deficiency
  • 1151939 2024-002
    Significant Deficiency
  • 1151940 2024-002
    Significant Deficiency
  • 1151941 2024-002
    Significant Deficiency
  • 1151942 2024-002
    Significant Deficiency
  • 1151943 2024-002
    Significant Deficiency
  • 1151944 2024-002
    Significant Deficiency
  • 1151945 2024-002
    Significant Deficiency
  • 1151946 2024-002
    Significant Deficiency
  • 1151947 2024-002
    Significant Deficiency
  • 1151948 2024-002
    Significant Deficiency
  • 1151949 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $763,532
17.289 Community Project Funding/congressionally Directed Spending $599,443
14.231 Emergency Solutions Grant Program $598,950
14.218 Community Development Block Grants/entitlement Grants $383,467
93.136 Injury Prevention and Control Research and State and Community Based Programs $165,027
93.558 Temporary Assistance for Needy Families $137,028
93.788 Opioid Str $131,237
21.027 Coronavirus State and Local Fiscal Recovery Funds $63,057
17.259 Wioa Youth Activities $35,912
17.258 Wioa Adult Program $34,048
93.959 Block Grants for Prevention and Treatment of Substance Abuse $23,229
93.958 Block Grants for Community Mental Health Services $19,324
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $18,767
93.575 Child Care and Development Block Grant $13,156
17.278 Wioa Dislocated Worker Formula Grants $12,925
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $3,283
14.267 Continuum of Care Program $1,542